Lawsuit Claims Starz-Owned Movie Company Hid Profits

Nu Image charges it licensed "Righteous Kill," "Mad Money" and "Brooklyn’s Finest" to the now-defunct Overture Pictures but was not paid its share.

Nu Image filed a lawsuit Tuesday against the defunct movie distributor Overture Films charging that its parent company, Starz Media, has failed to properly account for three of its movies that were distributed and won’t provide financial data to auditors.

Nu Image made deals with Overture for exclusive distribution rights in the U.S. and certain other territories for 20 years, the suit says. Overture promised to pay a minimum guarantee, according to the suit, as well as 10 percent of the adjusted gross proceeds and 50 percent of the net proceeds.